JournalNX- A Multidisciplinary Peer Reviewed Journal
ISSN No: 2581 - 4230
VOLUME 4, ISSUE 8, Aug. -2018
Director, Vishveshwaraya Technical Campus, Patgaon, Miraj, Maharashtra
HOD, Electrical Engineering Dept. VTC, Patgaon, Miraj, Maharashtra
Assistant Professor, Electrical Engineering Dept. VTC, Patgaon, Miraj, Maharashtra
In today’s electric market scenario every
country state electricity board has gone for
restructuring or more popularly it is termed as
deregulated environment of power system. Indian
state electricity board has also adopted this newly
formed electric market scheme, and divided in
generation, transmission and distribution utility.
Particularly in this paper transmission system
planning in deregulated environment is review from
different internationally recognized papers.
transmission planning etc.
In nineties era, all electric utility companies
across the world has gone for change in mode for
operation across the world. The change was from
vertically system of integration it has adopted a open
market systems. The exact change reason cannot be
noticed as it varies region to region. In the developing
countries the major issue observed is demand of
electricity is pretty high and inappropriate management
of power, it leaded to unfair tariff policies. This scenario
may affect the financial planning of electric utility
company and no funds will be available for improving or
adding generation capacity to the system. In the
advanced countries, the scenario in totally different the
major focus is on the providing the electricity at a lower
Regulation: Regulation means that the government has
set down laws and rules that put limits on and define
how a particular industry or company can operate.
Deregulation: Deregulation in the power industry is
restructuring of the rules and economic incentives that
government set up to control and drive the electric
power industry.
There are various reasons that led to deregulation,
author has tried to list few major reasons, that are as
1. The need for deregulation changed:
The basic reasons for moving from regulated to
deregulated market are all the need of regulation has
become very old to follow in 21st century.
2. Privatization:
The basic understanding across the world is
private entity would do more justice to work rather than
government entity and it is more prominent in Indian
context. But, In case of deregulation of electric industry
deregulation only means to opt for privatization. In
various states across India, state electricity board is been
divided in three entities and privatization or rules of
deregulated market are applied.
3. Decrease in running cost:
It is obvious that, if the competition increases it
will lead to competitors will bring more and more
innovations and lowering of operation cost.
4. Improved focus on customer requirements:
It was a monopoly of state electricity board, so
they had least botheration on the customer
requirements, although it was their duty to supply all
customers. This focus has lost the pro activeness in
fulfilling the needs of customers.
Few other reasons for supporting deregulation are listed
1. Global economic crisis
2. Alteration in ideological and political policies
3. Overstaffing in state electricity board
4. Challenging environment issues
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JournalNX- A Multidisciplinary Peer Reviewed Journal
ISSN No: 2581 - 4230
VOLUME 4, ISSUE 8, Aug. -2018
4. RESCO (Retail Energy Service Company): As the
name suggests it sells power in retil market. It may buy
the power from directly generation company and sell
customers. RESCO companies must be good in service to
survive in this competitive market.
Fig. 1. Structure of regulated industry
Figure.2. Structure of deregulated industry
1. Genco (Generating Company):
As a source of
energy, Genco becomes owner operator of the system.
Genco may own one or more generating stations.
Generating stations as independent authority bids the
power in grid at a competitive rate.
2. Transco (Transmission Company): Transco acts as a
delivery medium and it transfers power from generating
end to distibution company or at the customer end in
few cases. The role of transmission company is to own
and faciliate transmission of the power. In various
deregulated industry structures the tranmission
company maintains healthy enviornmnet of power
transfer and it acts as a monopoly of franchiese.
Operations of the transmission lines are not govern by
the transco company but it looked by the independent
system operator (ISO). The transmission company gets
paid for utilizing its infra.
5. ISO (Independent System Operator): The ISO is a
key player in the deregulated enviornment it may or may
not have any generation or directly take part in electric
trade bidding. Even if ISO is owning the generation it is
only used a system reserve capacity or in extreme cases
it is only used. The role of ISO is to keep system reliable
and secure.
Threare two major types of market model in
deregulated electric industry
1. Pool Model:
Pool model is mainly adopted in UK, and it also
termed as monopsony model. In this model only one
buyer available to bid all the energy generated by the
genco. Poolco have to play the role of system operator
also as there are the only buyer or facilitator to transmit
and distribute energy. In general all the genco companies
will decide the generator cost curve and then go for
auction mostly in day ahead market. In this auction
poolco is the only company which buys the power and
genco is the only company which sales the power.
2. Open Access Model:
The models are termed as nordiac model is
mostly preferred and implemented long back in USA. In
this kind of market auction of energy and day ahead or
guture markets is lookafter of separate entity named as
power exchange. All the paratmeters of system, in other
words, the work of keeping system reliable, efficient and
in smooth operation is look after of independent system
operator(ISO). ISO plays an vital role in this model, to
provide fair open access model to sellers and buyers.
3. DISCO (Distribution Company):
The role of
disribution company is to look after local power delivery
system. Disco takes charge of delivering power to
businesses, homes and small scale industries. DISCO may
by the power from spot market or direct contracts with
generation company to supply the power to customers.
Fig. Flow of operation of power exchange
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The conceptual framework for this legislation to
open electricity market open for competition. The act
move forward and talks about market based regime in
electric energy sector. The act also rationalizes, updates
and consolidates the laws of generation, transmission
and distribution. It mainly focuses on following points
1. To create competition in energy sector
2. consumer focussed operation
3. availability of supply
4. rationalization of tariff
5. decreasing the cross subsidazation levels.
In this paper author has tried to review all the
basics pertaining towards the deregualted energy sector.
Author has also taken effort to put two different models
of energy adoped by developed countries e.g UK and
USA. In both the countries power is surplus than the
demand. In State of Maharashtra power has to be buy
from the open market. Although the situation is fairly
enough as the solar energy over the last five years has
shaped electricity market and bridged electricity
demand to a greate extent, Innovation of LED lighting
technology has also contributed to this.
JournalNX- A Multidisciplinary Peer Reviewed Journal
ISSN No: 2581 - 4230
VOLUME 4, ISSUE 8, Aug. -2018
environment – international schemes comparison,”
Presented at IEEE PES Transmission and
Distribution Conf., Brazil, Mar. 2002.
8) C. J. Parker, and J. R. Stewart, “Development of
transmission planning techniques in a market
environment and application to a project in
Australia,” CIGRE 2000, No. 37-110.
9) R. D. Chistie, B. F. Wollenberg, I. Wangesteen,
“Transmission Management in deregulated
enviornment” Proceedings of IEEE Vol 88 No 3, pp
440-451, Feb 2000.
10) C. Parker, H. Colebourn, P. Wright, C. Popple, R.
Stam, P. Wallace, and M. Piekutowski,
“Transmission planning issues within the emerging
Australian market,” CIGRE 1996, No. 37-102.
1) K. Bhattacharya, M. H. J. Bollen, J. E. Dalder,
“Operation of restructed Power System”, Kluwer
Academic Publishers, Boston 2001
2) A. A. Chowdbury, and D. O. Koval, “A customer
value-added reliability approach to transmission
system reinforcement planning,” in Proc. 2001 IEEE
Power Engineering Society Summer Meeting, Vol. 3 ,
pp. 1710- 1718.
3) Lorrin Phillpson, H. Lee Willis, “Understanding
electric utilities and deregulation”. Marcel Dekker
Icn., New york 1998
4) Gerald B. Sheble, “Computational auction
emcahnisms for restructed power industry
opeatiaon,” Kluwer Academic Publishers, Boston
5) K. Okada, M. Kitamura, H. Asano, M. Ishimaru, and
R. Yokoyama, “Cost-benefit analysis of reliability
management by transmission expansion planning
in the competitive electric power market,” in Proc.
2000 IEEE International Conf. on Power System
Tech., Vol. 2, pp. 709-714.
6) M. Shahidehpour, M. Marwali, “Maintenance
scheduling in restructed power systems”, Kluwer
Academic Publishers, Boston 2000
7) R. D. Cruz, G. Latorre, and J. M. Areiza,
“Transmission planning in a deregulated
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